Envestra Group - proposed acquisition of Allgas Natural Gas Distribution Networks
Type of assessment
Informal Review
Reference
24851
Acquirer(s)
Envestra Group
Target(s)
Allgas Natural Gas Distribution Networks
Industry
Natural Gas distribution
Summary
Envestra owned the natural gas distribution networks north of the Brisbane River and Allgas owned the distribution networks south of the Brisbane River. Envestra sought to bid for the natural gas distribution networks of Allgas Energy Pty Ltd pursuant to a competitive tender process conducted by the Queensland Government.
Outcome of assessment
Not opposed
Total review days *
28
Commenced public review
7th July 2006
Date completed
15th August 2006
Market definition
The ACCC considered that, for the purposes of this analysis, each of the distribution networks in Queensland probably constituted a separate market, although it recognised that competition along the border of Envestra's North Brisbane and Allgas' South Brisbane network may be possible. However, this competition, if it existed, was not considered significant.
Competition analysis
Taking this into account, along with the fact that all except one (which serviced one large customer) of Allgas' networks were regulated by the Gas Code, the ACCC came to the conclusion that the proposed acquisition would be unlikely to result in a substantial lessening of competition.
Review timeline
Date
Event
7th July 2006
ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commence
28th July 2006
Closing date for submissions from interested parties
15th August 2006
ACCC decided not to oppose proposed acquisition
* Total Review days = Total business days less public holidays and time during which the review was suspended.
